SOURCE: ZipRealty

ZipRealty

September 23, 2010 08:30 ET

ZipRealty Releases Inaugural "Sale Rack Report" Identifying Country's Most Discounted Homes

Home Sellers Are Slashing List Prices by as Much as 65 Percent Nationwide

EMERYVILLE, CA--(Marketwire - September 23, 2010) -  Retailers aren't the only ones slashing prices this fall to attract shoppers. National real estate brokerage ZipRealty's (NASDAQ: ZIPR) inaugural Sale Rack Report finds that many home sellers are aggressively reducing their asking prices, some by more than two thirds of the original list prices and tens of thousands of dollars in markets nationwide.

ZipRealty (www.ziprealty.com) sorted through all the price-reduced homes on the market out of the more than 1.1 million MLS-listed homes across 35 of the nation's largest housing markets and collected the most discounted homes (by percentage) across various price bands to compile its Sale Rack Report.

According to the report, America's most price-reduced home by percentage is a two bedroom, two bathroom short sale condo in Hialeah, Fla., a city in the Miami metro, with a list price cut by more than 65 percent, from $173,000 to $59,900. The ZipRealty report found that eight of the ten most price-reduced homes nationally were short sales.

The Sale Rack Report also identifies the 10 homes out of the 1.1 million surveyed nationwide with the greatest price reductions in absolute dollars. The home with the largest absolute price reduction -- more than $22 million -- is a nine bedroom, 13 bathroom oceanfront home located on South Beach Road in the Hobe Sound area of Port Lucie, Fla. This 20,931 square-foot home was originally listed at $52 million and is currently on sale for $29.9 million.

"Shopping for a home today is like heading to the outlets, walking into your favorite retailer and finding merchandise at fifty percent off," said ZipRealty CEO Pat Lashinsky. "The historically low interest rates we're seeing right now, coupled with significantly slashed prices, make now an opportune time for many buyers to get into the market."

According to the Sale Rack Report, the top 10 most discounted homes (by percentage) are:

Home Rank   Street Address   City   State   Home Details   Original List Price   Current List Price   Price Reduction   Percent Change
1   W. 60 ST.   Hialeah   FL   2 BR 2 BA   $173,000   $59,900   ($113,100)   65.38%
2   EPHRAIM AVE.   Fort Myers   FL   3 BR 2 BA   $179,000   $62,000   ($117,000)   65.36%
3   ROUTE 6   Truro   MA   2 BR 1 BA   $895,000   $310,000   ($585,000)   65.36%
4   N.E. 199 ST.   Miami   FL   2 BR 1 BA   $199,000   $69,000   ($130,000)   65.33%
5   KING ARTHUR CT.   Northlake   IL   2 BR 1.5 BA   $150,000   $52,000   ($98,000)   65.33%
6   NEWCASTLE AVE.   Westchester   IL   3 BR 1 BA   $216,000   $74,900   ($141,100)   65.32%
7   W. HORIZONS   Boynton Beach   FL   1 BR 1.5 BA   $115,000   $39,900   ($75,100)   65.30%
8   PINEVILLE DR.   Lake Worth   FL   5 BR 4 BA   $994,000   $345,000   ($649,000)   65.29%
9   N.E. 191 ST.   Miami   FL   2 BR 2 BA   $169,990   $59,000   ($110,990)   65.29%
10   W. GLENWOOD AVE.   Turlock   CA   5 BR 2.5 BA   $850,000   $295,000   ($555,000)   65.29%

Also according to the Sale Rack Report, the top 10 most discounted homes (by absolute dollars) are:

Home Rank   Street Address   City   State   Home Details Original List Price   Current List Price   Price Reduction   Percent Change
1   S. BEACH RD.   Hobe Sound   FL   9 BR 13 BA $52,000,000   $29,900,000   ($22,100,000)   42.50%
2   DUNES VIEW RD.   Rancho Mirage   CA   6 BR 26 BA $75,000,000   $55,000,000   ($20,000,000)   26.67%
3   S. PERRY PARK RD.   Sedalia   CO   6 BR 8 BA $38,000,000   $19,995,000   ($18,005,000)   47.38%
4   PACIFIC COAST HWY.   Malibu   CA   4 BR 3.5 BA $32,000,000   $16,950,000   ($15,050,000)   47.03%
5   BORDER AVE.   Del Mar   CA   9 BR 6 BA $76,000,000   $61,000,000   ($15,000,000)   19.74%
6   W. POTRERO RD.   Thousand Oaks   CA   9 BR 15 BA $50,000,000   $35,000,000   ($15,000,000)   30.00%
7   WYE NARROWS DR.   Queenstown   MD   9 BR 10.5 BA $29,500,000   $14,950,000   ($14,550,000)   49.32%
8   INDIAN MOUND RD.   Wellington   FL   3 BR 8 BA $53,000,000   $39,500,000   ($13,500,000)   25.47%
9   WESTWOOD DR.   Bedford
Corners
  NY   8 BR 9 BA $43,000,000   $30,000,000   ($13,000,000)   30.23%
10   DELFERN DR.   Los Angeles   CA   5 BR 7.5 BA $49,500,000   $37,950,000   ($11,550,000)   23.33%

To view the top five homes in each of five Sale Rack Bargain Bins, please visit http://ziprealty.typepad.com/blog/2010/09/sale-rack-data-national-and-price-bands.html. The Sale Rack Bargain Bins include:

  • CLEARANCE BIN: price-reduced homes originally priced under $199,999.
  • MOVE-UP BIN: price-reduced homes originally priced from $200,000 to $499,999.
  • UPSCALE BIN: price-reduced homes originally priced from $500,000 to $999,999.
  • LUXURY BIN: price-reduced homes originally priced from $1 million to $4.99 million.
  • SUPER LUXE BIN: price-reduced homes originally priced over $5 million.

The full report, including addresses and photographs of listed homes and the top five most price-reduced homes in each of the 35 markets the brokerage serves, visit http://ziprealty.typepad.com/blog/2010/09/slideshow.html.

Home shoppers can easily view price reduced homes in their area through ZipRealty's new Sale Rack feature on the company's website at www.ziprealty.com/sale. By entering a city or ZIP code, shoppers can view information and photos of price reduced homes in that area, organized into one of three sale racks -- homes that have been reduced by 40 percent, 25 percent and 20 percent.

About the Sale Rack Report
Each quarter, ZipRealty compiles real estate listing and sales data from the Multiple Listing Services offered in the 35 major U.S. metropolitan areas in which the real estate brokerage operates. The data pulled and cited within this report is a snapshot pulled on September 20, 2010.

This report is intended to convey information on the general market conditions where ZipRealty operates, not on ZipRealty's operating results. ZipRealty's operating results may be materially different from the general trends shown in this report. Please do not draw any conclusions about ZipRealty's operating results based on the information contained in this report but instead refer to ZipRealty's earnings releases and periodic reports as they are made public. 

About ZipRealty, Inc.
ZipRealty is a leading full-service residential real estate brokerage that uses an innovative combination of a comprehensive online presence, robust proprietary technology and knowledgeable local agents to offer its clients fast, responsive and transparent service. The Company's award-winning, user-friendly website gives its users access to comprehensive local Multiple Listing Services home listings data, as well as other relevant market and neighborhood information and tools. The Company's proprietary technology, including its agent platform and customer relationship tools, helps it to enhance customer service while increasing agent efficiency and reducing costs, allowing the Company to pass on significant savings to consumers as permitted by law. Founded in 1999, the company operates in 35 major markets in 22 states and the District of Columbia. For more information on ZipRealty, visit www.ziprealty.com or call 1-800-CALL-ZIP.

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